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Annex I

United Kingdom

Original text. Later amendments are not shown.

Annex I to Regulation (EC) No 2423/2001 (ECB/2001/13) is amended as follows:

  1. 1..

    Part 1 is amended as follows:

    1. (a)

      Section I is amended as follows:

      1. (i)

        The following sentence is added at the end of paragraph 4:

        ‘These criteria for the substitutability of deposits are also applied to determine whether liabilities should be classified as deposits, unless there is a separate category for such liabilities.’

      2. (ii)

        The first sentence of paragraph 5 is replaced by the following:

        ‘For the purposes both of determining substitutability of deposits in accordance with the previous paragraph and classifying liabilities as deposits:’

    2. (b)

      Section IV is amended as follows:

      1. (i)

        Paragraph 6a is replaced by the following:

        ‘6a.

        In the event that any country accedes to the EU after 31 December 2007, reporting agents must thereafter report positions vis-à-vis counterparties resident in that new Member State in accordance with Table 3 of Part 2.

        If figures collected at a higher level of aggregation show that positions vis-à-vis counterparties resident in any Member State that has not adopted the euro are insignificant, an NCB may decide not to require reporting in relation to such Member State. The NCB shall inform its reporting agents of any such decision.’

      2. (ii)

        Paragraph 7a is replaced by the following:

        ‘7a.

        In the event that any Member State adopts the euro after 31 December 2007, reporting agents must thereafter report positions vis-à-vis the currency of that new participating Member State in accordance with Table 4 of Part 2.

        In such cases, the column in Table 4 of Part 2 corresponding to the former currency of the new participating Member State is no longer applicable.

        In the event that any country accedes to the EU after 31 December 2007, reporting agents must thereafter report positions vis-à-vis the currency of that new Member State in accordance with Table 4 of Part 2.

        If figures collected at a higher level of aggregation show that positions vis-à-vis the currency of a Member State that has not adopted the euro are insignificant, an NCB may decide not to require reporting in relation to such Member State. The NCB shall inform its reporting agents of any such decision.’

      3. (iii)

        Paragraph 9a is replaced by the following:

        ‘9a.

        Where positions in respect of cells corresponding to Member States that have not adopted the euro are insignificant but NCBs nevertheless collect them, these may be transmitted by the NCBs to the ECB with a delay of a further one month from the close of business on the 28th working day following the end of the quarter to which the positions relate. The NCBs may decide when they need to receive data from reporting agents in order to meet this deadline.’

  2. 2..

    In Part 2, Tables 3 and 4 are replaced by the Tables set out in Annex II to this Regulation.

  3. 3..

    In Part 3, the table is amended as follows:

    1. (a)

      In asset category 2 (loans), the second indent after the first paragraph is replaced by the following:

      ‘—

      deposits, as defined under liability category 9 (deposits)’.

    2. (b)

      In liability category 9 (deposits):

      1. (i)

        The first sentence is replaced by the following:

        ‘Amounts (shares, deposits or other), which are owed to creditors by reporting agents and which comply with the features described in paragraph 5 of Section I of Part 1, except those arising from the issue of negotiable securities or MMF shares/units.’

      2. (ii)

        The following paragraphs are added after the final paragraph:

        ‘Shares issued by MFIs are classified as deposits instead of as capital and reserves if: (a) there is a debtor-creditor economic relationship between the issuing MFI and the holder (regardless of any property rights in these shares); and (b) the shares can be converted into currency or redeemed without significant restrictions or penalties. A notice period is not considered to be a significant restriction.

        In addition, such shares must comply with the following conditions:

        • the relevant national regulatory provisions provide no unconditional right to the issuing MFI to refuse redemption of its shares;

        • the shares are “value certain”, i.e. under normal circumstances they will be paid out at their nominal value in the event of redemption; and

        • in the event of the MFI’s insolvency, the holders of its shares are legally subject neither to the obligation to cover outstanding liabilities in addition to the nominal value of the shares (i.e. the shareholders’ participation in the subscribed capital) nor to any other onerous supplementary obligations. The subordination of shares to any other instrument issued by the MFI does not qualify as an onerous supplementary obligation.

        The notice periods for the conversion of such shares into currency are used in order to classify these shares according to the breakdown by notice period within the instrument category “deposits”. These notice periods also apply when determining the reserve ratio under Article 4 of Regulation (EC) No 1745/2003 (ECB/2003/9). Any earmarked shares relating to loans made by the MFI should be classified as deposit liabilities, with the same original maturity breakdown as the underlying loan, i.e. as “deposits with agreed maturity” or “deposits redeemable at notice”, depending on the maturity provisions of the underlying loan contract.

        When held by MFIs, such shares issued by MFIs and classified as deposits instead of capital and reserves should be classified by the holding MFI as loans on the asset side of its balance sheet.’